The Pet Paradise Pet Shop, specialized in selling pet houses, is currently facing profitability challenges. The founder, Lisa, recognizes your expertise in business knowledge and financial acumen and seeks your advice to determine crucial sales targets for breaking even and achieving specific profit margins. Key Financial Parameters: Fixed Costs: The fixed costs for Pet Paradise Pet Shop amount to $25,000 annually. Variable Costs: The variable cost associated with each pet house sold is $150. Product Price: The selling price for each pet product is $450. Goals for Analysis: Lisa wants to understand the sales targets required to achieve the following financial milestones: a. Break-even Point: Determine the number of pet houses Pet Paradise needs to sell annually to cover the fixed and variable costs, resulting in a break-even situation. b . Profit of $50,000: Identify the sales volume needed to generate a profit of $50,000 after covering fixed and variable costs. c. Profit of $150,000,000: Determine the sales target required to achieve a profit of $150,000, taking into account fixed and variable costs. c. Profit of $250,000,000: Determine the sales target required to achieve a profit of $150,000, taking into account fixed and variable costs. Excel Analysis Using Goal Seek: Utilize Goal Seek in Excel to perform the financial analysis based on the given parameters: Fixed Costs: 25,000 Variable Costs: $150 Product Price: $450 Remember to set up the Excel sheet with the appropriate formulas and use the Goal Seek feature to iteratively determine the required sales volume for each scenario. Save each scenario in separate worksheet. Your insights into these key financial metrics will provide valuable guidance to the Pet Paradise Pet Shop in establishing achievable sales targets and enhancing overall business profitability.

Millennium Printers Inc. manufactures color laser printers. Model L-1819 presently sells for $150 and has a total product cost of $120, as follows: Direct materials $90 Direct labor 20 Factory overhead 10 Total $120 It is estimated that the competitive selling price for color laser printers of this type will drop to $140 next year. Millennium Printers wants to establish a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost reduction ideas: Purchase a plastic printer cover with snap-on assembly. This will reduce the amount of direct labor by nine minutes per unit. Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $3 per unit. Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 45% of the factory overhead is related to running injection molding machines. The direct…

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Stylish Sitting is a retailer of office chairs located in San Francisco, California. Due to increased market competition, the CFO of Stylish Sitting has grown worried about the firm's upcoming income stream. The CFO asked you to use the company financial information provided below.           Sales price $ 73.00   Per-unit variable costs:       Invoice cost   40.45   Sales commissions   17.45   Total per-unit variable costs $ 57.90   Total annual fixed costs:       Advertising $ 54,500   Rent   77,000   Salaries   225,000   Total annual fixed costs $ 356,500       If 38,900 office chairs were sold, Stylish Sitting's operating income (πB) would be: (Do not round intermediate calculations.)   Multiple Choice   $230,890.   $270,890.   $200,890.   $330,890.